September 26, 2021

Compensation Watch ’21: Deloitte Puts Mid-Year Raises On the Table

If you follow TheBig4Accountant on Instagram, you might have seen this included with TB4A’s Instagram Stories yesterday: That is what Deloitte & Touche Chair and CEO Lara Abrash told Deloitters in audit and assurance during an all-hands call on Thursday morning. This was also confirmed in posts on Fishbowl and Reddit. It was also noted […]

There Will Be a New Boss at Moss Adams Next Year

A day after Grant Thornton announced its next occupant of the corner office, Moss Adams sent out a release on Sept. 16 saying who its next corner office dweller will be. The new boss of Moss starting next April is Eric Miles, a partner who currently leads the firm’s consulting practice and has spent his […]

Here’s the Truth About What Really Happens at EY’s Neuro-Diverse Center of Excellence From Someone Who Was There

Ed. note: the following is a first-hand account of one person’s experience at the EY Neuro-Diverse Center of Excellence. The author has requested to be anonymous. On Saturday Night Live last March, Elon Musk came out on national TV as having Asperger’s syndrome. For the neurodiverse, this event was momentous not only because Musk hosted […]

KPMG Poaches Someone From PwC and Issues a Press Release, Part XVI

It looks like the hot spots for Big 4-on-Big 4 poaching lately are the U.K. and Australia, where KPMG Down Under recently made champagne wishes and caviar dreams come true for one PwC managing director. Australian Financial Review reported: Sally Torgoman, 38, has joined KPMG as a partner in the firm’s infrastructure business. Ms Torgoman was […]

Number of the Day: 53

The average age of a non-Big 4 public accounting firm partner hasn’t really changed at all in the last three years. In late December 2018, CPA Journal analyzed the results of the 2018 NYSSCPA–Rosenberg Practice Management Survey and mentioned this in regards to partners’ ages: Partners have gotten slightly younger, both in terms of average […]

Friday Footnotes: PwC Pays the Poors Less; Deloitte’s New Minis; BDO Brings on Audit Staff | 9.17.21

Malaysia says auditor KPMG to pay $80 million in 1MDB settlement [Reuters] Malaysia said on Thursday audit firm KPMG has agreed to pay a 333 million ringgit ($80.11 million) settlement to resolve all claims related to their fiduciary duties on auditing of 1Malaysia Development Berhad (1MDB) accounts from 2010 to 2012. PwC reports disability and […]

TIL There’s Something Called ‘Turnover Contagion’ and It’s Probably Happening At Your Firm Right Now

We here at Going Concern have never been enthusiastic fans of buzzwords. Whether they’re cluttering up your LinkedIn profile or awkwardly littering a Big 4 Twitter account, our tolerance level for buzzwords is a steady nil at all times. That intolerance may be changing now as we continue the journey forward into the accelerating Great […]

Number of the Day: $2,626

A question we’ve often been asked through the years from aspiring CPA candidates is: Do accounting firms give out bonuses for completing the CPA exam, and if so, how much? The answer is, yes, many public accounting firms do throw some money new CPAs’ way for passing all four parts of the exam, but the […]

Private Equity Is Now Dipping Its Toes In Public Accounting Firms

In early August, EisnerAmper announced a “strategic investment” in the firm courtesy of investment management firm TowerBrook Capital Partners, the first of its kind for a firm of that size. The door is now wide open for private equity to get a piece of the accounting pie. Per the press release: TowerBrook’s significant capital infusion […]

KPMG Poaches Someone From PwC and Issues a Press Release, Part XV

In today’s edition of “Big 4-on-Big 4 Poaching From Around the World,” we head to the largest country in South America where Carlos Augusto da Rosa Gomes recently left PwC in Brazil for the bluer pastures of KPMG. He announced his new home away from home on LinkedIn earlier this month: KPMG is Carlos’s third […]

Friday Footnotes: KPMG Woos Broke People; PhD Pay Day; Guy Sues Deloitte | 9.10.21

KPMG’s UK arm among first to set targets for working class staff [Reuters] “We’re setting a socio-economic background representation target for the first time, alongside our other diversity targets,” KPMG said in a statement. AICPA Foundation Grants 25 Minority Doctoral Fellowships [CPA Practice Advisor] The funding comes from the AICPA Fellowship for Minority Doctoral Students […]

Guy May Have Gone Through Puberty While Working At KPMG

“Well, I’m KPMG man and boy. I actually did engineering at university and then decided that I wanted to get a business qualification alongside that, so I joined the KPMG audit team in Glasgow and did my charted accountant training there. And then post-qualifying I moved into our transaction services team in order to implement […]

Compensation Watch ’21: How ’Bout Them Raises At PwC? (NEW UPDATE)

(Updated original post on July 8 with a comparison of average raise percentages per promotion from 2020 and 2016.) PwCers expected really good raises this year. They trust that management would make that happen, given that PwC U.S. had record-setting revenue of $18 billion last year during a global pandemic. Last year PwCers had to […]

Friday Footnotes: KPMG Lied; EY Works For Free; Macaroni and Cheating | 9.3.21

KPMG faces complaint of providing ‘false’ information on Carillion audit [Reuters] KPMG allegedly provided “false and misleading” information about its audits of collapsed builder Carillion and data erasure company Regenersis for regulatory checks, Britain’s accounting watchdog said on Wednesday. EY teams up with NYC to offer pro bono advice to Black businesses [Consulting.us] Through the […]

Number of the Day: 73%

Deloitte US made national headlines last Tuesday when CEO Joe Ucuzoglu told employees in an email that the firm “will require PPMDs and professionals to be vaccinated [against COVID-19] to access US Deloitte facilities,” effective Oct. 11, which led Adrienne to speculate that the other Big 4 firms will eventually fall in line behind Deloitte […]

PwC Might Do Something No Other Big 4 Firm Has Ever Done Before

After years and years of PCAOB inspections of the Big 4 in which the percentage of audits of public companies that weren’t up to snuff have been in the 30s, 40s, and even 50s, we finally had a respectable audit report card earlier this year when Deloitte nearly had a single-digit deficiency rate in its […]

Friday Footnotes: Firms Sweating Staff Losses; Who Got Fined This Time?; Accountant’s XXX Problem | 8.27.21

Staffing and COVID-19 relief programs are firms’ top concerns in 2021 [Journal of Accountancy] Finding qualified staff is an enduring concern that continues to challenge CPA firms this year, according to the 2021 AICPA Private Companies Practice Section (PCPS) CPA Firm Top Issues Survey. Hiring staff emerged as the No. 1 issue affecting firms that […]

EY Is Helping Its Broke Interns Get Their 150 Credits

In the war for talent, it’s not (imaginary) prestige or ping-pong tables that will win the battle but cold hard cash. Or, in this case, a little help with what is often a costly and time-intensive venture for future CPAs. Last week, EY announced their new Career Path Accelerator, the TL;DR of which is an […]

EY UK Sheds Some Pounds Because An Audit Partner Messed Up Big Time

The UK’s audit cops were itchin’ to dole out some discipline today, and the butts that were paddled belong to ex-audit partner Mark Harvey and his former employer EY. The Financial Times reported: Accounting firm EY has been fined £2.2m and issued with a severe reprimand for failings in its audit of Stagecoach, the London-listed […]

Audit Market Caps In the UK: The Financial Times Fails a Math Test

“The Glacial Pace of Audit Reform Needs To Speed Up” The Financial Times might wish to reconsider this headline, above its editorial of late last week. Global climate change considered, the metaphor may be more apt than intended, as the likely fate of the world’s glaciers is their tragic and accelerating collapse into muddy puddles amid massive fields […]

BDO USA Did Not Feel the COVID Pinch In 2021

As of right now, BDO USA has locked down the sixth spot in the largest U.S. public accounting firms by revenue, after officially announcing this morning that its fiscal year 2021 revenue eclipsed $2 billion, an all-time high. Bravo Delta Oscar came in at $2,000,300,000 for the 12-month period ending April 30, representing a year-over-year […]

CliftonLarsonAllen Is Ranked No. 1 In Something

And that something has to do with … construction. For the third consecutive year, CLA has been named the top construction accounting firm by Construction Executive. It’s an honor to be recognized, & it speaks to our ability to help owners & managers address industry challenges & plan for financial success https://t.co/rE1m1zVntL pic.twitter.com/D1RhjZzyPX — CLA […]

Friday Footnotes: That’s Weak; Disclosing Turnover?; One Heckuva Farewell | 8.20.21

Revenue, lease accounting still challenge private companies [Journal of Accountancy] Revenue recognition and lease accounting remain a challenge for private companies after a one-year, pandemic-related delay in effective dates provided financial statement preparers some relief. For tax & accounting firms, the time to learn blockchain is now [Reuters] One question these professions should be asking […]

Public Accounting Firms Don’t Need to Increase Salaries to Retain Staff Says Guy Who Obviously Never Worked In Public Accounting

In the 12 years since this website was founded, we’ve heard a lot of complaints from accounting students and early career public accountants. A LOT. Many things have changed since 2009, but one thing has remained consistent all these years and it’s the overwhelming sentiment that public accountants are paid far too little for the […]

Number of the Day: $860,668

Things that are recession-proof during a global pandemic: Amazon Costco Netflix Alcohol Public accounting firms According to INSIDE Public Accounting, top-line growth for the top 100 public accounting firms this past year was 8.3%, which seemed like a pipe dream in March and April 2020 as the Rona was starting to rage in the U.S. […]

Deloitte Poaches Someone From PwC and Issues a Press Release, Part V

Not in Australia this time around. In today edition of “Big 4-on-Big 4 Poaching From Around the World,” we head across the Atlantic where the Queen’s Deloitte has nabbed a longtime PwCer and magically turned her into a partner: Deloitte in the UK has hired Kanika Mehta as their latest Partner to join their Transaction Services team, after […]

So How Much Did PwC U.K. Partners Rake In This Year?

Ferrari, Aston Martin, McLaren, Jaguar, and Mercedes-Benz dealerships in and around London probably have been bustling more than usual lately, and here’s why: PwC’s UK partners took home record pay this year after the firm’s profits rose by a quarter to a fresh high of almost £1.2bn on the boom in corporate dealmaking. Average profit […]

Compensation Watch ’21: Did BDO USA Ante Up This Year?

Over the last week or so we analyzed how raises this year compared to previous years at RSM US and Grant Thornton. Now it’s time to take a look at raises this year at the last of the mini-Big 3 firms, BDO USA, which leapfrogged GT to become the sixth-largest public accounting firm in the […]

Number of the Day: $2.9 Billion

More specifically, $2,878,519,000. That’s how much revenue was pulled in by RSM US in fiscal year 2021, which ended April 30. While it’s not the eye-opening double-digit revenue increase that the House of Adams had in FY 2020, it’s still solid growth of 6.4% over last year during the height of the pandemic outbreak in […]

Deloitte Poaches Someone From KPMG and Issues a Press Release, Parts I, II, III, and IV

Damn, Deloitte Australia got quite the haul recently from the Australian House of Klynveld, nabbing four KPMGers—two partners and two directors—who will join Big D’s risk advisory business starting in October. That is some hardcore poaching. Australian Financial Review reported on July 27: Daniel Houseman, 42, is joining Deloitte as a partner from October. Mr Houseman is […]

KPMG Just Missed Getting a Record-Setting Fine In the U.K. By *This* Much

When an independent disciplinary tribunal concluded in June that KPMG U.K. and one of the firm’s partners failed to comply with the fundamental principles of objectivity and integrity in their work on the sale of bed manufacturer Silentnight to U.S. private equity firm HIG Capital in 2011, the panel recommended KPMG be fined a record-setting […]

Olympics Tracker: These Athletes Who Toiled At Accounting Firms Are Going For Gold In Tokyo (NEW UPDATE)

[Updated post from July 26 with additional athletes, event results.] If time spent consecutively looking at spreadsheets, eating hours, and submitting timesheets late were Olympic events, accountants would be among the strongest contenders for a gold medal during the summer games in Tokyo. But there have actually been accounting Olympians—Gwen Jorgensen and Alexandre Bilodeau to […]

Barry Melancon

The Profession Is Well-Positioned For Change Says Guy Who Has Held the Same Position Since 1995

Last week, CPA Practice Advisor shared remarks made by AICPA CEO Barry Melancon at this year’s ENGAGE conference and … uh. Let’s just get straight into it. That resiliency will be needed going forward, with more changes to come from technological disruption, expanded categories of non-financial reporting, and the rapid evolution of new service lines […]

OK Which One of You Has This Yacht?

We know it doesn’t belong to former WeWork CEO Adam Neumann or it would be called “Community Adjusted EBITDA.” No words… pic.twitter.com/cV6kzUCZ6s — The Wet Bandits (@ChaseJones11) August 1, 2021 Happy Monday, everyone. Related article: Let’s All Have a Good Laugh at WeWork’s Stupid ‘Community Adjusted Ebitda’

Compensation Watch ’21: Did RSM US Make It Rain On Employees This Year?

At this time a year ago, RSM employees had just found out if the firm was handing out raises and bonuses while the Rona was still raging in the U.S. Management decided to give raises—capped at 5%—to only those employees who received a promotion (i.e., A2->S1, S1->Supervisor, Supervisor->Manager, etc.). As summer turned to fall, and […]

Things Are (Sort Of) Getting Back to Normal at Prometric Soon

As we trudge ever onward toward month 18 of “two weeks to stop the spread,” it’s time to start thinking about a return to normal at everyone’s favorite place where CPA candidates’ goals and unreasonable expectations get crushed: Prometric. The company recently announced a softening of policies enacted early on in the pandemic, some of […]

Judge Sides with PwC In Whistleblower’s Retaliation Lawsuit

The cards are usually stacked against former Big 4 employees who take one of the firms to court, whether it’s over harassment, discrimination, retaliation, or unfair termination, because of the firms’ army of lawyers and their no-holds-barred approach to winning. Ex-PwC auditor Mauro Botta knew he faced an uphill battle trying to convince a judge […]

Friday Footnotes: EY’s Deep and Cozy Trouble; KPMG Avoids Audit Trial; GT’s New Digs | 7.23.21

EY Accused of Actively Concealing NMC Health Audit Fraud From Investors [Bloomberg] Ernst & Young faces accusations it “actively concealed” a six-year fraud from investors in a fresh lawsuit over its auditing work for the troubled NMC Health. The hospital operator’s founder, Bavaguthu Raghuram Shetty, said the accounting giant enjoyed a “deep and cozy” relationship […]

The Pandemic Paid Off For PwC Partners Across the Pond

Good afternoon and happy Monday, grunts. Boy do I have something that is going to warm your cold black hearts. As we can all agree, the last year and a half has been rough. We’ve all had to make sacrifices, though thankfully many of us have at least gotten through it without having to put […]

Friday Footnotes: A Very KPMG Collapse; PwC Asks the Wrong People; Deloitte Denied | 7.16.21

Civilisation will collapse completely by 2040 – MIT model, confirmed by KPMG [Cape Talk] The most dystopian headline you’ll read all week (hopefully). SEC Whistleblower Issued Award of More Than $1 Million for Assistance in Investigation [National Law Review] According to the SEC award order, the anonymous SEC whistleblower alerted Commission staff to securities law […]

Rhode Island Just Can’t Quit Deloitte

And all it took was an apology for Rhode Island to fall back in love with Deloitte. “They did apologize, quite frankly, with me directly for that time frame when things were really very disruptive,” Gov. Dan McKee said of Deloitte. Much like its relationship with the state of Florida, Deloitte Consulting’s relationship with the […]